USA30 and EURUSD, H1
The Dollar was driven to session highs ahead of the testimony while it has remained static following the Industrial Production outcome, which was in line with consensus forecasts. EURUSD sits below 1.1700, the Cable declined by 120 pips lower since 1.3268 peak, while USDJPY idles just over 112.60.
US Industrial Production bounced 0.6% in June, after falling 0.5% in May (revised from -0.1%) and rising 1.1% in April (revised from 0.9%). That boosted capacity utilization to 78.0% from 77.7% (revised from 77.9%). Manufacturing production was up 0.8% versus -1.0% previously (revised from -0.7%), with motor vehicles and parts up 7.8%, erasing much of the prior 8.6% drop (revised from -6.5%). Machinery production was 0.7% higher from -1.4% (revised from -0.9%), while computer, electronics production rose 1.5% from -0.4% (revised from unchanged). Utilities declined 1.5% versus -0.7% previously (revised from 1.1%). Mining climbed 1.2% after the prior 2.2% increase (revised from 1.8%).
Equity futures continue to indicate a slightly lower Wall Street open, while yields were little changed. Hence US Dollar traded higher, while US Stocks traded mixed-to-lower, despite the solid industrial production report, holding out for some sage advice from Fed Chair Powell shortly. Fed Chair Powell takes top billing in Senate testimony from 14:00 GMT and he’s likely to temper enthusiasm for reaching the Fed’s policy “sweet spot” with concerns about trade, financial excess, etc.
Meanwhile, the USA30 is 17-points lower, USA500 fell 3-points and NASDAQ is off 5-points in pre-market action. This followed a 0.44% gain on JPN225 upon return from Marine Day. Europe is trading 0.14-0.57% lower on the majors.
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Andria Pichidi
Market Analyst
HotForex
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